On January 1, 2017, Getty Corp. made a loan to Global Inc. and received in exchange a 2-year 8% $150,000 note with interest compounded semi-annually on July 1 and January 1 . The market interest rate for similar notes is 12%. (Please show all workings)

Required:

(a) Prepare the journal entries to record the receipt of the note.

(b) Prepare a schedule of interest revenue and bond amortization (using the effective interest rate method) for the life of the note.

(c) Prepare the journal entries to record interest and amortization for:

(i) July 1, 2017

(ii) Dec 31, 2017

(iii) January 1, 2018